Provides energy and utility service sales tax relief
benefit to certain manufacturers throughout the State.

CURRENT VERSION OF TEXT

As introduced.

An Act concerning sales of energy and utility service and
amending P.L.1993, c.373.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1993,
c.373 (C.54:32B-8.45) is amended to read as follows:

1. a. Receipts of retail
sales, except retail sales of motor vehicles, of alcoholic beverages, of
digital products, and cigarettes as defined in the "Cigarette Tax
Act," P.L.1948, c.65 (C.54:40A-1 et seq.), made by a seller from a place
of business regularly operated by the seller for the purpose of making retail
sales at which items are regularly exhibited and offered for retail sale and
which is not utilized primarily for the purpose of catalogue or mail order
sales, in which county is situated an entrance to an interstate bridge or
tunnel connecting New Jersey with a state that does not impose a retail sales
and use tax or imposes a retail sales and use tax at a rate at least five
percentage points lower than the rate in this State, are exempt to the extent
of 50% of the tax imposed under the "Sales and Use Tax Act,"
P.L.1966, c.30 (C.54:32B-1 et seq.).

b. The exemption provided
by subsection a. of this section shall apply unless a seller advises the
director, in writing, that it intends to collect the tax at the full rate
imposed under the "Sales and Use Tax Act".

c. (1) Retail sales of
energy and utility service to a business facility that certifies that it
employs at least 50 people at that facility, at least 50% of whom are directly
employed in a manufacturing process, and provided that the energy and utility
services are consumed exclusively at that facility, are exempt to the extent of
50% of the tax imposed under the "Sales and Use Tax Act," P.L.1966,
c.30 (C.54:32B-1 et seq.).

(2) A business facility
that meets the requirements of paragraph (1) of this subsection may file an
application for the energy and utility service sales tax exemption with the Executive
Director of the New Jersey Economic Development Authority, who
shall promulgate regulations and forms for that purpose. The Executive
Director of the New Jersey Economic Development Authority shall
process an application submitted under this paragraph within 20 business days
of receipt thereof. An exemption shall commence for a business upon notice of
approval of its application and shall expire for any year in which the business
fails to meet the requirements of paragraph (1) of this subsection. Upon
approval, the Executive Director of the New Jersey Economic
Development Authority shall provide prompt notice to the applicant and also
shall provide prompt notice to the President of the Board of Public Utilities
and to the Director of the Division of Taxation in the Department of the
Treasury. The Executive Director of the New Jersey Economic
Development Authority also shall provide the president and the director with an
annual list of all businesses that have been approved under this subsection.

(cf: P.L.2006, c.44, s.11)

2. This act shall take
effect immediately.

STATEMENT

This bill is intended to
provide business facilities that manufacture products anywhere in the State,
with an energy and utility service sales tax relief benefit similar to that
provided to certain manufacturers located within an urban enterprise zone under
section 23 of P.L.2004, c.65 (C.52:27H-87.1). The energy and utility service
sales tax relief benefit is intended to encourage the growth, or at least
stabilization of the manufacturing sector in New Jersey. This benefit is
intended to help attract new manufacturing businesses that might otherwise
locate in a state with a lower tax on energy and utility service sales. To
qualify for an energy and utility service sales tax exemption a business would
have to employ at least 50 persons, at least 50% of whom are directly employed
in a manufacturing process on site.